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tv   Mad Money  CNBC  November 13, 2012 6:00pm-7:00pm EST

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dprks kbrks le looks relatively good on the charts. i i'm jim cramer and welcome to my world. >> they are nuts. they know nothing. i like to say there is a bull market somewhere. "mad money" you can't afford to miss it. welcome to "mad money." welcome to cram eexcramerica. i'm trying to educate you. call me. why aren't we getting crushed? why isn't the market being laid to waste by the big issued in washingt washington? ♪ yoo rath >> today the dow closing down
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and the nasdaq declining. isn't it logical to ask why we haven't been clubbed into bearish submission including the radical changes in spending caughts that can stop any economy in it's tracks. [ sound of train ] >> i mind why we aren't pummeled instead of being unchanged like yesterday is because there are factors that need to be flushed out on this show. ones that explain why things aren't going the intuitive way. i find this hope somewhat incredible. given the terrible track record of congress and the president. and the huge goal between the parts. after all, if you are president
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oba obama, you believe the election is over and your campaign received a ringing endorsement. but if you are a republican a, u have to believe that those republicans that do not want to rise above politics are banks on massive declines in spending to wreck the economy f. if you are a republican, in permanent campaign mode, i'm sure one of your advisers going off the fiscal cliff might be the best thing in terms of the election. worse, if you are a democrat, you might think the defense spending cuts could be coming and you might think that is good.
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there is a sense that those who want to stimy the president are going to be targeted by other politicians and yes, they will be targeted by us. you stand in the way of a deal, your principle is greater layoffs and lower standards and principle is lower stock prices. the pressure of the business people putting on the government you get a deal spearheaded by our guest dave cody is greater than anything i have seen in our life time. and it is growing. that is why the optimism may not be misguided. those are being outed as people who want a weaker, poorer nation. a weaker, poorer nation. not people who want to put a stop to profitting government.
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and let's go there, i'm not even confused with it. y i will find you and put you in the "mad money" wall of shame. selling is something that doesn't come all that easy to people. there is no panic in the air yet. and so far the worries about the fiscal cliff don't understand it. even though the people that watch cnbc don't know what to panic about. i know, no one ever made a dime panicking. we know from the numbers, and the earnings report that is we
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got, people are spending increasing amounts on their homes. there is no way we won't have a new spike up in foreclosures. the bankers ceo reductions in pay are going to happen if they don't get this done. those people don't know what awaits them. third, investments should go down in value. people buy stocks because the interest from cash or bonds is lower than post tax dividends or stocks. they should sell some of those stocks. they should take a chance that it goes to the higher income rate.
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however, a great deal of the stock owned by individuals are better than bonds. and the tax rate of dividends is irvel vent. they are natural buyers and take up to slack on the move down. they cushion us. others shouldn't sell because the dividends of others are so high. how would you feel of passing up on the gain of home depot? which brings us to the last and most important reason why we aren't crashing. even a sub par one, remember what i said, that a known bad
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outcome is better than almost anything that is unknown. see, if you miss the moment of a deal, though, you miss the gains that we are going to get for the rest of the year. let me give you a couple of contrasts. >> the worst one that i have ever seen in 1990 was in kuwait. that was a stalemate that you wanted to see. in the end you wanted to buy before the war started. until then, it was a perfect moment for sellers. how about the summer of last year. people fled caused by the debt ceiling problem. you didn't know when it would be solved. lots of people think this is like the debt ceiling fight. and that is why i'm telling you, you can take some profits off
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the table. don't think that selling the stocks makes any sense. this is one where you have to figure that it will rise upon politics. new year triggers 600 trillion dollar in new taxes. they still beat sadam hussain. we crush those who wanted to make it so that our kids can't afford to go to college some win re-electi re-election. your goal is nothing short of finding and creating the bear market everywhere. and that is unforgivable in the world of "mad money" which is why the world of shame awaits
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all who stand in the way of the deal. sla clark in florida clark? >> jim, a big first time booyah from the keys. >> i love the fish, what's up? >> jim, i love you. you have shown me to go for chesapeake. it looks like the united states is going back in the oil business. who should i be looking at? >> if you want to know who is the best finder of oil, those are the two eog, let's go to jordan in pennsylvania. >> hey jim, big booyah from pittsburgh, pennsylvania. >> i'll tell you, that tastes like iron city beer. it tastes like coming home. >> i got weight watcher's.
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how do you feel about their recent change in management. >> i don't want to be greedy. i think you are greedy if you hang onto wtw. >> you know what, let's go to wayne in virginia. >> love your show. >> accounting and reg layerities equal sell. i understand from the papers that there are issues there. involving an sec investigation. you close your eyes and you sell because there is not much to it. we have good things holding us up. understand this, but we will not it wi we will not let people sink below. let's just say there is a
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special annex that i'm adding to the wall of shame. you will lose elotion. "mad money" will think right back. >> coming up. cooking with gas, clean enjergy fuels took another step today and investors filled up on the stock. after falling from it's highs this year it is it time to hop back onboard? we have the exclusive on today's headlines and later, cliff notes. time is running out to resolve our fiscal folllfollies, cramer taking action. tonight dave cody talks about his role in the fix the debt campaign. his take on whether we can avoid the fiscal cliff. plus, ready for takeoff? caught in the holding pattern this year.
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could the flight path be changing or will fiscal cliff concerns keep it grounded? reading the flight plan on tonight's edition of off the charts coming up on "mad money." s
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s. it has become clear that the fuel for service vehicles probably not going to be aided by washington for at least the next four years. they may have reached the exp
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expectation. last night this company got really good news. these plans will be able to produce enough to support a network of fueling stations. clean enjoy is becoming for integrated which would give them an edge down the road. let's find out more about how
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the company is doing and where it is headed. talk about what this means for your company and also for truckers across the country. >> it simporn fimportant for us. we got an endorsement. and they no as you know, they know a lot about natural gas around the world. it is very important that they are buying some equipment for us. but they are a partner now. we are excited about it. what do these things look like?
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we hear about floating plastic shells. >> right. these i would say like a big gas plant. lots of plumbing. a few acres. you are making it cold and turning it into energy. we have gas plants where we are knocking out the heavy. so it is not a 1500 foot ship. we have -- we will do what i told you we are going to do. the 78 fueling stations border to border and coast-to-coast. every 250 miles they will have the truck stops in place. every 250 miles, it is not perfect, at this point, but we have taken away the point that you can't move goods across the
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country and in these important regions. you don't want to hall l and g more than 250 miles. but really, what we have talked about, we see them doing ten of these plants. >> why don't you want to do it for more than 250 miles? >> we have good economics. >> the heavy duty trucks use 25,000. you will be saving them $35,000 a year or more. we have earlier ones that are using 35,000 gallons a year. so that is a one year payback. >> the new engines are coming out, jim. >> right, now they have been delayed. they haven't had the right trucks.
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and that is the bad news for 2013. you know i think it is cleaner or cheaper. that country is stronger. i waited in a couple of gas lines for the next two weeks. we are a little ridiculous for this country. where is the back-up fuel? if we had add least for trucks, a network that was also separate network? you would at least not had the gas lines for diesel trucks? >> we had 51 stations and we are able to get them on in a day and a half. >> we had to use back up generators as well. >> you are right. we are starting to hear from the shippers, they want fuel diversity. they are worried about pouring all of this stuff. >> well, they do. and they are working on all sorts of things to do this, they
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see this as a problem as well. >> what do you think is the reason why we never hear from the administration. we never hear the following, which is you know what, we have a lot of nat gas and it is better than oil. >> the president said it one time in front of one of our trucks. that is what i need. we don't need government laws and incentives. we have economics on our side. we have ge, we have catapilar. every equipment truck manufacturer in the world has got the product or announced it. that is a big change. the players are getting into the game. all we need from the government is talk about using our own natural rejousources.
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>> where is xes pechesapeake. what have they done lately. >> i talked to him last night and he was in florida. and so i thanked aubrey last night. they have been a great partner. >> sandy cutler who is the ceo of the company, said he fully expected that we would have something that made it so that we could fill our cars up and hook them up to the natural gas line. after this recent hurricane, a lot of people are hooking up generators to the gas lines. when can i hook up a pump? >> i had one for years. for a dollar a gallon. ge is working on that right now. it is a couple of years out.
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you are right. think about it, the infrastructure goes away and we have natural gas in 70 million homes. >> it is natural. >> i feel better. i got bummed. i'm a head game player when it comes to a cleaner fuel. you know what i think it is pate got tick. >> stick with us, jim. >> clean energy fuels. stay with cr are amer. >> coming up. cliff notes. time is run aring out with the market and your money hanging in the balance, cramer is taking action. dave cody talks about his role in the fix the debt campaign and his take on whether we can avoid the fiscal cliff. and later, ready for take off? caught in the holding pattern
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this year. could the flight path be changing or will fiscal cliff concerns be grounded? all coming up on "mad money."
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things. our government has made it so that multiple negatives will happen on the same day. spending cuts could put over two million american jobs at risk. oh, and speaking of the debt ceiling. we are getting close to hitting that gagain. one of the big reasons is because we are seeing genuine leadership. a group of executives including cramerfame have banded together to create the campaign to fix the debt. the only way we are going to solve this problem is by cutting spending and increasing taxes in a responsible and reasonable way. you know i think honeywell is a tremendous company.
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because he is on the steering committee of the fix the debt campaign and he is spearheading it. welcome back to "mad money." >> always great to see you. >> welcome to the radical middle. >> yeah, hey, radical middle. that is what it is. when we talk about rise above into the radical middle. you are seeing the president tomorrow. what are you going to say to m him? >> we have the worst debt problem we have had in over 200 years since the revolutionary war. democrats and republicans have to work together. we have to come up with a $4 trillion plan and with a similar
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tax system with entitlement programs that have to get reformed. and some discretionary spending cuts and they need to get this done. i believe that if they were to do something like go off the fiscal cliff. it could promote a bigger crisis and recession. this could be something that we can't predict where it is going to go. that is silly. >> right, on the other side of it. i think there is a potential for a robust recovery that economists are estimating. there are a lot of people like me who are saying let's wait and see. the world's big democracies are gridlocked over debt. we are going to wait and see what happens. if all of us could look at it and say they are governing.
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they understand compromise is synonymous with governing not giving in. >> would you explain to the president that the ceo's that did the best were the ones that fired the fastest? >> what is happening in our situation. every company has attrition. retirements, leave for another job. well, we lose 800 people a month. we hire back only 100 or 200 a month. >> and you have one of the best five year plans of any company out there. >> you go i'm not sure what is going to happen next month. if they do something silly, i don't want to hire a bunch of people that i have to layoff. i'm going to wait and see. the same thing happens on
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capitol expenditures. >> do you think that the ceo's can play? especially with our fix the debt effort which you are familiar with. please sign the petition, 200,000 signatures on this already. as people want to rise above, but if we look at our fixed debt effort, we have over 100 ceo's at this point all of whom are saying the same thing. time to be responsible. it is time to be the biggest responsible company in the world. >> can you take down in your unbelievably good campaign to
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fix the debt. if you are willing to let us get this. what are you routing for here? increased cost of living, slower wage growth. >> yeah, that is very true. >> so, how do we out the people who are in favor of increased cost of living, lower stock prices, what pressure do we put on them? well, i'm looking for the radical middle. i have felt 70% of the country is in the middle. why don't you do the right thing. you know, stop your ideological arguments and get the right thing down for the country. if we kick the can down the road, i think we have an under 2% gdp growth economy for a far as you can see until the crisis really hits. one is the bond market will
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force us to do it and people will say the bond market, well if long-term rates go to 5% on government bonds your mortgage is going to be 8% and your car loan is going to be 12%. >> they will come after us and -- right? the chinese. all of this stuff is true. we have low rates now. this is the sort of thing that is true, until it is not. >> now, one last question, there is a common refrain i hear, people know that i have some needs. they say if we tax guys like you, i doesn't raise a lot of money. i say listen, i'm part of the peas that you raise. this arguments that if we raise rates for vindividuals, that is not going to solve the problem? >> it is not going to solve the problem. i always say look, when it comes to means testing medicare,
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medicaid, social security, having us pay more. i understand all of that. but don't confuse that with an actual solution to the problem. we benefit the most, we need to make sure that we pay more. don't confusie that with the solution >> it takes us off the track. we need 4 trillion. it looked at the six tax rates broken out. the top two rates if you wanted to solve the financial issues you have to take 108% of their income. even your buddy would consider that. >> they thought about this deeply. and they wouldn't go with that. i'm proud that you are the guy going down to washington
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tomorrow. that is the chairman and ceo of honey well. for the fix the debt campaign and the american peopwho underss the crisis that we are in. >> come up coming up. the clock is ticking. find out how to fire away at cramer. can he withstand your onslaught of stops? and later, ready for takeoff? >> shares have been caught in a holding pattern this year. but could the flight path be changing or will fiscal cliff concerns keep it grounded? cramer is taking out his tool set to read the plan. coming up on "mad money."
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it is time for the lightening round. >> i know you like glb, but i'm look k at sandstorm sand. >> i know that group, these are the ones that do, how would we describe them? these guys lend other miners money and they are good, but remember, if the gold goes down, they won't be drilling. >> nice. i would like to know about qcom. >> magnificent quarter, doing well, getting respect. may i add cisco reported a good number today and it is going to help broadcom which is going to
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thi be pulled down. i need to go to dave in california. >> booyah from sunny california. >> i'm into high yield dividends and paying stocks. >> we like that one very much. he has a 5% yield. you don't get as much in return. i got to tell you, i think that stock is real good. let's go to will in new york. will? >> how you doing? >> real good, how about you there, chief? >> not too bad. i want to ask you about -- it released earnings last week. wal-mart says it sells great in stores. it is getting nothing but good press. the market beats the stock up. but could the stock be in for a
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second wave? >> first of all, it hasn't been concussed yet. second it is not a major league stock. it is the wrong stock for thissthi thiss thissenvironment. >> susan. >> how do you feel about exel? >> i like it. and by the way, another one of -- another one of our specks, nice move today. remember, i am in favor of speculation and in one small piece of your portfolio. and that is the conclusion of the lightening round. ld him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up
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this is a man made problem the congress and the president created. if they would stop fighting with each other they could solve this thing with the stroke of a pen. i'm not trying to minimize the scale of the problem. it could send our economy back into a recession. i'm going to keep going. people are saying why is this stock and that stock down. it is always the same. it is killing stocks. but you know what? some of the stocks that would be the worst hit. as a big part of the cliff, they are telling a different story. i'm talking about boeing.
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these stocks say that they have been down for so long that it is their time. that is why we are going to look at boeing. we are doing it with my colleague at the paid sister site to the stre if it were so bad you would think it would be there. i think the stock is headed higher not lower.
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i see this. he says don't look at it like that. not only has the stock gone higher. but it has done so sing the election. they make boeing seem attractive. it is a strong flow of support under $69. it is going to give you what i call downside protection. the stock is trading above all of its key moving averages.
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it has broken out of the ten day. it is broken out of its 50 day moving average. most important out of its 200 day moving average. when it is trading below this line they will right it off as a loser. as of today boeing has made three consecutive closes and could attract many more buyers. it is an upstock. there is another reason, it has
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to do with the indicator at the bottom. it is the moving average, the line we call this the macd. this is a momentum indicator. right now it is being told it is ready to roar. it is making the cross over. the black line crosses over the red line. they have been pretty reliable by signals. right before boeing rallied like crazy and we had it at the beginning of octobeoctober. would she used to print out the macd's every day and find me one that is worth buying. and i have to agree with him.
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some of that is with other countries. they are not governments they are commercial air place players. right now we have a tremendous goal. they are now on track for the first time since 2006 and not only were the shipped off to customers, even if we don't bridge the fiscal cliff, i believe that people. you might think that the schedules woe go into effect on january 1st, you but a number of them are performing quite well and boeing is the best of them.
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with the chart that suggested that the stock is headed higher. i think language is right. and we are anxious to buy more if we get back to the $69 floor. bob, these projections... they're... optimistic.
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productivity up, costs down, time to market reduced... those are good things. upstairs, they will see fantasy. not fantasy... logistics. ups came in, analyzed our supply chain, inventory systems... ups? ups. not fantasy? who would have thought? i did. we did, bob. we did. got it.
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today we saw great numbers from home depot and dick's sportisport ing goods. two remarkable ceo's who are worthy of significant praise. the average numbers of home depot show dig chani big change. blake, i like this guy, instead he said the strength was the start of the path of healing of the housing market. home depot performed during the housing market. you got to love a guy who says you know what, i'm citing the
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housing cycle and better. home depot will be the destination. home depot was the possible gap which was why the stock got hammered. sure enough one of the best performing stocks got better. now dick's is a terrific performing stock who. when things are slowing down in the economy, you don't buy sneakers. dick's delivered a good performing sales game. because a somewhat related company, cited the warm weather for their outerwear selections. however, it does make you feel
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better about what dick's is up to. the pin action from the success of home depot and dick's let's consider for a moment. that is a justifiable consequence of the company's gains. the common themes are awesome management. i salute home depot they have given shareholders for the returns. ♪ hallelujah . stick with cramer. >> next on the kudlow report. the president meets with big labor. will he give in and help push
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the leftist agenda? next on cnbc. where's your gift? uh... whew. [ male announcer ] break from the holiday stress. ship fedex express by december 22nd for christmas delivery. ♪ ♪ ♪
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